According to the International Iranian Stone Exhibition, VAT, which was supposed to be a consumption tax, has become a burden on the country's producers for many years, and now the parliament's plan to increase the VAT rate by one percent could increase the pressure on Be the production sector of the country.

The country's oil economy, which has led to vicious cycles of waste in the country over the past four decades due to abundant oil revenues, has been moving towards an optimal structure based on sustainable non-oil revenues for several years by reforming the budget structure. One of the stable incomes on which many countries of the world rely is tax revenues, and in our country, for several years now, it is planned to prevent tax evasions by reforming the country's tax system, while creating new tax bases.

Income taxes are currently the main source of government revenue. Meanwhile, corporate performance tax and VAT are an important part of income taxes. However, the only transparent part of our economy that pays taxes in full and on time is the productive sector of the economy, which is under a lot of pressure in the field of tax payment due to some weaknesses and shortcomings in the tax system.

Economists believe that due to the many shortcomings in the VAT collection process, changing the tax rate to increase government revenue in addition to inflation, will cost transparency for the productive sector of the economy, and with more pressure, this sector will inevitably move to the underground sector. And the opaque economy will move.

The burden of VAT is on the producer

Mohammad Anbari, a business expert, referring to the misconception of VAT collection from the last ring, said: "Currently, they say that only VAT is collected from the final ring, but the reality is something else; The fact is that at present the middle circles also pay VAT and according to the law, this tax should be returned to them but it is not refundable; At the same time, the price in the market is determined based on the elasticity of supply and demand. The buyer assumes the price of a 100 toman product with a tax of 109 tomans, so he adjusts his demand based on this new price, in practice, the demand for goods is reduced by collecting VAT.

The business expert said that the VAT burden is now wrongly borne by the producer, adding: "Wherever there is an exemption or an opaque loop, the tax burden remains on the producer and the flow of the commodity loop is broken. The manufacturer's tax is also increased on both sides of the ring. That is, a manufacturer whose next loop is opaque is identified as the final loop, and the tax chain no longer moves forward. The manufacturer of that ring has paid both the value added tax of the previous loop and the value added tax of the next loop.

He continued: "Our underground and non-transparent economy in the minimum scenario reaches more than 30% of the volume of the economy, so by collecting VAT, the producer who operates transparently has to choose only part of the economy to sell its goods, and if If he wants to sell his product without an invoice, he has to pay double or more VAT. In practice, the tax burden falls on the producer of the service or product.

VAT has taken over the country's production

Anbari added: The buyer in the market is faced with two suppliers, one selling his goods without an invoice and the other with an invoice; Therefore, the manufacturer has to pay VAT out of pocket so as not to lose the customer, these are practical and real phenomena on earth. Elsewhere, the producer pays VAT, but the next-tier tax that he must receive is returned to him in the form of credit with the tax authority after 6 months, and in these economic conditions, this producer has actually paid the tax. Unfortunately, VAT is an absurd and paperless idea of ​​some economists who have stunted the country's production and have not created practical transparency.

The challenge of raising the VAT rate by one percent

According to the report, a plan is currently being considered in the parliament to increase the VAT by one percent, which will surely increase the general level of prices by several percent in these economic conditions. Experts object to the principle of VAT, and in this case, increasing VAT would be very wrong.

In this regard, Yousef Davoodi, a member of the Agriculture Commission of the Islamic Consultative Assembly, in an interview with Mehr reporter about increasing the VAT rate from 9 to 10 percent in the budget law of 1400, said: "Increasing the VAT rate is wrong." This puts extra pressure on people and producers.

The representative of the people of East Azerbaijan, referring to the weak implementation of VAT and the need for the government to move towards preventing tax evasion, added: "I believe that reforms should be made in the issue of VAT." At present, this tax base is taken from all links in the production chain instead of the final loop. Instead of raising VAT rates, tax evasion and irrational tax breaks should be tackled. Taxes must be collected on the basis of the facts that exist in the manufacturing firm.

Also, Behrouz Mohebbi Najmabadi, a member of the Program and Budget Commission of the Islamic Consultative Assembly, said about the one percent increase in VAT in the budget law of 1400: "I am against the increase in VAT rate." This increase will impose an additional financial burden on the people. We will oppose it in the 1400 budget consolidation commission and in the open court of the parliament.

Regarding the cost of transparency by collecting VAT, the representative of the people of Sabzevar said: "There are many gaps in the field of taxation, and new work and financial resources can be created for the government." Enough burden on the shoulders of producers and people. Many manufacturing units now pay their taxes transparently, but if the VAT rate increases, these production units will no longer pay taxes.